NYSE$KWR

Quaker Chemical Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Quaker Houghton's Q2 2023 results were released, showing increased net sales and improved profitability.

Quaker Houghton reported a 1% increase in net sales to $495.4 million, driven by value-based pricing. Net income rose to $29.3 million, or $1.63 per diluted share, while adjusted EBITDA increased by 37% to $80.2 million.

  • Net sales reached $495.4 million, a 1% increase compared to Q2 2022, driven by value-based pricing initiatives.
  • Net income was reported at $29.3 million, with earnings per diluted share of $1.63.
  • Non-GAAP net income was $34.8 million, with non-GAAP earnings per diluted share of $1.93.
  • Adjusted EBITDA increased by 37% to $80.2 million compared to $58.5 million in Q2 2022.

Headline financials

Total Revenue

$495M

Previous: $492M+0.6%
EPS (adj)

$1.93

Previous: $1.32+46.2%
Sales Volume Change

-10.0%

No prior period
Capital Expenditures

-$17M

Previous: -$15.1M-12.6%
Free Cash Flow

$12.3M

Previous: -$795K+1647.9%
Net Income

$29.3M

Previous: $14.3M+104.6%
Operating Income

$56.8M

Previous: $31.9M+78.0%
Gross Profit

$178M

Previous: $150M+18.8%
Cash & Equivalents

$189M

Previous: $202M-6.4%
Total Assets

$2.79B

Previous: $2.97B-6.1%
Stock-Based Comp

$3.89M

Previous: $2.97M+30.8%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$495M

Q2 2023+0.6%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company expects the uneven market conditions to persist through the end of the year and will focus on strengthening the business, delivering value to customers, and advancing strategic initiatives to drive earnings and cash flow growth.

Tailwinds

  • Investing to strengthen the business
  • Delivering value to customers
  • Advancing our strategic initiatives
  • Delivering strong year-over-year growth in earnings
  • Delivering strong year-over-year growth in cash flow

Headwinds

  • Current uneven end market environment will persist at least through the end of the year.
  • Softer market conditions
  • Impact of the war in Ukraine in the EMEA segment
  • Uncertainties related to downturns in a customer's business
  • Unanticipated customer production slowdowns and shutdowns

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+20.6%

Q2 2022

Best reaction

-10.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+5.1%+7.4%
Q4 2025+1.1%-13.5%-25.8%
Q3 2025+5.5%+7.1%+9.6%
Q1 2025-2.6%-5.8%+2.3%
Q4 2024+2.6%-1.2%-7.8%
Q3 2024+4.2%+3.9%+2.0%
Q2 2024-6.5%-8.0%-3.3%
Q1 2024-1.0%-0.2%-3.3%
Q4 2023+0.5%-0.2%+4.1%
Q3 2023+13.0%+14.6%+28.9%
Q2 2023-5.3%-9.1%-11.4%
Q1 2023+11.3%+11.5%+7.8%
Q4 2022+0.6%+0.5%-5.0%
Q3 2022+6.4%+19.1%+25.1%
Q2 2022+20.6%+21.3%+8.7%
Q1 2022-2.8%-13.4%-5.1%
Q4 2021-3.4%-10.9%-4.2%
Q3 2021+3.6%+3.9%-12.3%
Q2 2021-1.9%+2.8%+4.3%
Q1 2021-0.7%-1.6%-1.5%
Q4 2020-4.2%-5.3%-20.1%
Q3 2020+8.9%+22.6%+24.2%
Q2 2020-1.8%+1.5%-2.6%
Q1 2020+7.6%+3.8%+21.8%
Q4 2019+1.1%+0.1%-28.9%
Q3 2019-4.2%-7.6%-0.6%
Q2 2019-10.0%-10.5%-15.2%
Q1 2019-3.3%-6.6%-18.6%
Q4 2018-0.5%-3.5%-4.6%
Q3 2018+13.3%+13.7%+14.6%
Q2 2018+10.0%+3.2%+10.0%
Q1 2018-2.0%-2.4%+3.3%
Q4 2017+1.1%-0.7%-2.1%
Q3 2017+4.8%+3.9%+8.1%
Q2 2017-3.9%-5.4%-8.2%
Q1 2017-0.5%+0.0%-3.6%
Q4 2016+2.9%+0.8%-2.4%
Q3 2016+1.9%+2.3%+20.0%
Q2 2016-0.1%+0.1%+1.1%
Q1 2016-1.4%
Q4 2015+6.1%
Q3 2015+5.1%
Q2 2015+16.0%
Q1 2015-5.5%
Q4 2014-7.0%
Q3 2014+8.7%
Q2 2014-0.3%
Q1 2014-2.7%
Q4 2013+6.8%
Q3 2013-3.1%
Q2 2013+1.7%
Q1 2013+8.6%
Q4 2012+1.9%
Q3 2012+11.6%
Q2 2012+2.8%
Q1 2011-1.6%
Q1 2012+0.2%
Q4 2009-1.6%
Q4 2011-1.6%
Q3 2010+3.5%
Q3 2011+3.5%
Q4 2010-4.3%
Q2 2010-4.3%
Q2 2011-4.3%
Q1 2010-6.6%

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